Lotte Duty Free continues to close and downsize stores at home and abroad, shifting focus to profitability - South Korea

Lotte Duty Free, a major duty-free chain, closed its store at Wellington International Airport in New Zealand in February. It will also withdraw from its store at Guam International Airport in the United States, whose contract expires in July 2026.
Prior to this, the company is also considering closing its Melbourne store in Australia in August 2024. All of these closures are due to the expiration of contracts, but the reason behind this is the store management strategy centered on profitability.
In 2018, Lotte Duty Free acquired JR Duty Free Australia in order to expand its duty free stores in the Oceania region, securing five stores in Australia and New Zealand.
However, over the past few years, the company has seen poor performance relative to its fixed costs, leading to the closure of stores and a strategy of concentrating on key hubs such as airports in Brisbane and Melbourne.
Changes are occurring not only overseas but also in domestic store development. In 2024, the floor space of the Lotte World Tower store will be increased by 30%, and the Busan store will be reduced by 1 floor.
The Nowin Myeongdong store, which served as a showroom, is also scheduled to close at the end of 2024.
Kim Dong-ha, CEO of Lotte Duty Free, said, "We are focusing on profitability, not volume-based market expansion.
"It's time to focus on our activities. We will reexamine our business viability, adjust our portfolio, and lay the foundation for medium- to long-term growth," he emphasized.